Indian Government Cuts Import Duty on Mobile Parts to Boost Manufacturing

Boosting global competitiveness: India cuts mobile parts import duty

  • Import duties on key mobile manufacturing components reduced from 15% to 10% by the Indian government.
  • Components affected include screws, SIM sockets, lenses, antennas, and more.
  • The move aligns with the Make in India initiative, which aims to boost electronics exports and make India globally competitive.

The Indian government has reduced import duties on key components used in mobile manufacturing. The Union Ministry of Finance made this announcement late Tuesday, bringing down the import duty from 15% to 10% on various components crucial for mobile manufacturing.

The components affected by this decision include screws, SIM sockets, metal mechanical items, battery covers, front covers, main lenses, back covers, GSM antennas, and polyurethane foam cases.

Furthermore, the revised import duty also covers items like conductive cloth, LCD conductive foam, LCD foam, BT foam, heat dissipation stickers, battery cover stickers, protective films for main lenses, mylar for LCD FPC, film-front flash, and side keys used in mobile phone manufacturing.

This move aims to boost India’s electronics exports, making it more competitive globally and encouraging growth in the mobile phone sector.

We reached out to Prabhu Ram, who is the Head of the Industry Intelligence Group at CMR. He shared his perspective, stating, “The move to slash import duties on mobile phone parts has the potential to incentivise more smartphone brands to align with the vision of Make in India for the world. Recognising the complexities of component production and supply chain interdependencies, the emphasis on scaling up production through lower tariffs is a prudent approach. However, the immediate impact on consumer prices might be muted, as the current list primarily covers basic components.”

Globally, the electronics industry is evolving rapidly, with electronic products influencing lifestyles worldwide. The increased demand for electronic devices is expected to drive further growth in India’s electronics sector. As the government works towards creating a self-reliant and globally competitive electronics industry, these policy changes mark a crucial step in the right direction.

According to Reuters, mobile phone exports from India are on the rise. In 2022-23, they doubled to $11.1 billion compared to the previous year. Estimates suggest exports might reach $15 billion in 2023-24. The exporters list include big names like Apple, Samsung, and Xiaomi.

Apple already manufactures several iPhone models in India and is considering expanding its production to include iPads and AirPods to diminish its dependence on China. Additionally, Samsung has declared that, in addition to smartphones, they will start manufacturing their Laptops at their Noida factory, the company’s second-largest manufacturing facility globally.